Just talking the talk to customers? Customer concentration and supplier corporate social responsibility decoupling.

This study examines the relationship between customer concentration and supplier corporate social responsibility (CSR) decoupling. Prior research remains divided on whether a concentrated customer base promotes or constrains supplier CSR. We theorize that customer concentration may create structural tension for suppliers by simultaneously increasing the need to demonstrate CSR responsiveness and constraining their capacity for substantive CSR implementation. Using data from Chinese publicly listed firms from 2010 to 2020, we find that customer concentration is positively associated with supplier CSR decoupling, consistent with a greater divergence between CSR communication and substantive CSR implementation. The positive association is stronger under greater industry competition but weaker in regions with a stronger legal environment. A stronger legal environment also attenuates the strengthening role of industry competition. Further analysis shows that the positive association between customer concentration and CSR decoupling is significantly more pronounced in the governance dimension than in the environmental and social dimensions. Overall, this study provides new insights into the relationship between customer concentration and supplier CSR and contributes to more effective and sustainable supply chain management.